MSM Malaysia pushes for sugar import controls as losses widen in Q2 2025 

MALAYSIA – MSM Malaysia Holdings Bhd, the country’s largest sugar producer and maker of “Gula Prai,” has renewed calls for government intervention through refined sugar import controls and a finalized pricing framework, as the group posted a second-quarter loss. 

In a press statement, the company said the measures are essential to securing national food security and maintaining the sustainability of Malaysia’s sugar sector.  

Acting group chief executive officer Hasni Ahmad highlighted that the industry continues to face headwinds, including persistent high input costs, volatile raw sugar prices, and fluctuating global production volumes. 

“The sugar industry is expected to remain challenging in 2025,” Ahmad stated, emphasizing the need for immediate policy support. 

In July, MSM had urged the government to impose tariffs of up to 50% on imported sugar from Thailand, citing concerns about oversupply.  

Group CEO Syed Feizal Syed Mohammad noted that MSM’s annual production capacity of 2.8 million tonnes already exceeds Malaysia’s domestic demand of 1.55 million tonnes, making external imports unnecessary. 

For the second quarter ended June 30, 2025 (2Q25), MSM reported a loss after tax (LAT) of RM29.7 million (US$7.0M). This narrowed slightly from RM32.4 million (US$7.7M) a year earlier, supported by an 18% reduction in production costs following lower raw sugar (NY11) prices, freight expenses, and foreign exchange rates. 

Revenue slipped 2% year-on-year to RM813 million (US$192.9M) from RM833 million (US$197.6M) in 2Q24, as higher sales volumes could not offset reduced average selling prices in the industrial and export markets. 

Capacity utilisation across the group’s two refineries declined marginally to 49% from 50% a year earlier, reflecting production curtailments aimed at managing inventory levels. Operational efficiency, however, remained steady. 

For the first half of 2025, MSM posted a net loss of RM26.02 million compared with a net profit of RM9.32 million in the same period last year. Total revenue fell 10.2% year-on-year to RM1.56 billion (US$370.1M) from RM1.74 billion (US$412.8M). 

Despite the weak performance, MSM remains optimistic about a rebound in domestic demand towards the end of the year, supported by festive consumption trends.  

Ahmad said the company is reinforcing its domestic footprint, expanding value-added products, and streamlining operations to counter export pricing pressures and work towards profitability. 

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